The new scheme covers semiconductor design, manufacturing, packaging and testing, along with domestic production of equipment used in chipmaking.
The Indian government has formally notified the Semicon 2.0 scheme, with an outlay of ₹1.27 trillion, aimed at building a stronger and more self-reliant semiconductor manufacturing ecosystem in the country.
The programme is structured across six key segments covering the semiconductor value chain. These include support for chip design by Indian companies, manufacturing of semiconductor production equipment, fabrication facilities, assembly, packaging and testing, among other areas.
Through Semicon 2.0, the government intends to provide sustained policy support to companies investing in semiconductor design and manufacturing capabilities. The scheme is expected to complement ongoing efforts to establish domestic capabilities across different stages of chip production.
The expanded focus also reflects India’s attempt to move beyond semiconductor assembly and develop greater capabilities in areas such as chip design, fabrication and advanced packaging. Building a domestic ecosystem for semiconductor equipment could further reduce dependence on overseas suppliers and strengthen the local supply chain.
The government said the scheme has been notified to provide continued policy support for the development of India’s semiconductor design and manufacturing ecosystem.
With the new allocation, Semicon 2.0 is expected to play a key role in attracting investments, supporting Indian semiconductor companies and expanding domestic manufacturing capabilities across the chip value chain.
